FRANCHISING SERIES: Starting a beauty or wellness franchise
The beauty and wellness industry is currently one of the booming businesses in the Philippines. Why? Because of a huge population of young people who are more attuned with their looks and their outward appearance. If you’re ready to start but are unaware of the right way to do this, consider getting a franchise.
Advantages of Beauty and wellness franchise
Compared to other types of businesses, maintaining a successful salon, parlour, spa, or barber shop is relatively easy because of how easily it attracts clients of all ages. People always need to have their hair cut, their nails done, and physically pamper themselves. It is lucrative and a consistent source of money — enough to support your family back home.
A license for a beauty and wellness franchise can be worth anywhere from tens of thousands of pesos up to a million pesos. Five thousand Euros or Php250,000 is already enough to start a small beauty or wellness franchise in the Philippines. This may seem a lot at first, but if you are able to set aside a few hundred Euros a month, you can soon have enough to cover for capital.
Franchise packages also differ per franchisor. But some common items included in packages are:
- Staff support and training, including providing trained hairstylists, colourists and staff
- Assistance in merchandise and equipment purchasing
- Refresher training programmes, including seminars on new trends
- Streamers, posters and similar marketing items
Franchise Development Process
Partners need to suggest store locations subject to approval by franchisors. Once a location has been approved, the franchisor will help in the decoration and furbishing of the store by providing a project engineer. The budget needed to do renovations will be suited to the partner’s budget. Owners will also be given an operational manual apart from training so that they will manage their stores according to standard operations.
Start Up costs
Start-up costs cover rent, first month stocks on equipment and inventory, including site development and the franchise fee. Total investment for start-up may climb to Php1 million or roughly 20,000 Euros.
Return of investment of parlours can be anywhere from 1-3 years. Profitability highly depends on the quality of the staff and the location of the store. However, business owners should also consider additional costs like royalty fees. Usually, these include a service fee of 5 percent of gross sales and an additional marketing fund worth 5 percent of gross sales.
Points to consider
Before partnering with a chosen franchisor, it is important for you to read the contract, including the terms of the franchise. Not all franchisors offer the same items in their package. Also, the profitability of the brand is very difficult to pinpoint, as factors like location and price should be considered.
Those who plan to own a beauty or wellness franchise should remember that a parlour is nothing if not for the great service given by hair stylists who know how to cut as well as talk to their clients. Most of the time, customers come back because of the stylists — not totally because of the name of the establishment. Investing in highly skilled stylists and employees is a certain way to draw more customers and make them loyal clients.
Beauty and wellness franchising companies
Here are a number of popular beauty and wellness brands that offer franchising opportunities:
- David’s Salon
- Reyes Haircutters
- Ystilo Salon
- Shapes and Waves
- Mary Pauline Salon
There are lots of other franchisors to choose from in the Philippines. Start browsing through the brands to begin your quest for financial independence!
Do you have any questions about starting a beauty or wellness franchise? Leave them in the comments section below!